Can I Claim Equipment and Computer Hardware as a Business Expense in Singapore?
Yes, via capital allowances. Standard 3-year write-off (one-third per year) or accelerated 1-year write-off for qualifying assets (S$30,000 combined cap per YA). Assets costing S$500 or less are fully expensed in the year of purchase.
What Inland Revenue Authority of Singapore (IRAS) says
Capital allowances on plant and machinery are governed by sections 19 and 19A of the Singapore Income Tax Act. Companies can elect the standard 3-year write-off under section 19, the accelerated 1-year write-off under section 19A(1), or the immediate write-off for low-value assets under section 19A(2) for assets costing S$500 or less.
When you can claim
- Laptops, desktop computers, and tablets purchased for business use, claimed as capital allowances over 3 years or accelerated 1-year write-off.
- Printers, scanners, and other office peripherals used exclusively in the business.
- Servers, networking equipment, and IT infrastructure for business operations.
- Low-value assets costing S$500 or less (including phones, accessories) fully expensed in the year of purchase.
- Software licences purchased as part of hardware (embedded software); separately purchased software may be treated as revenue expenditure and deducted in full.
When you cannot claim
- Equipment purchased for personal use or dual-use items where there is no clear apportionment for business use.
- Capital allowances on assets used before the company commenced business operations (pre-commencement capital expenditure is not allowed).
- Items that are not plant and machinery (e.g., buildings, land improvements).
- Exceeding the S$30,000 per YA cap for accelerated write-off: the excess reverts to the standard 3-year schedule.
Good to know
Pro tip: For assets costing S$500 or less, immediate write-off is automatic: no election needed and no cap applies. For assets above S$500 and up to the combined S$30,000 accelerated cap, the 1-year write-off under section 19A(1) provides a better cash-flow benefit than the standard 3-year write-off. Bundle your larger equipment purchases in a single YA to maximise the accelerated cap.
Stop guessing what you can claim in Singapore
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